ET Home › News › Economy › Policy Search for News, Stock Quotes & NAV's

03:58 PM | 22 DEC CLOSED ெசன்ெசக்ஸ் நிஃப் 50 ேகால் (எம் எ… எஸ் /ஐ… CREATE ஈ- CHOOSE
LANGUAGE
PORTFOLIO மார்க்ெகட்…
MARKET STATS 33,940 184.02 10,493 52.70 28,525.00 24.00 75.93 -0.1406 ் TAM

New year will end the Swiss-bank option for money

laundering
BY ET ONLINE | UPDATED: DEC 22, 2017, 01.36 PM IST Post a Comment

Swiss banks that became synonymous with black money in India will no longer be an
option for those who seek to launder their black money. Switzerland will share information
on accounts by Indians in Swiss banks from January 1, 2018. The automatic exchange of
information from January 1, 2018 will start in September 2019.

So far, India had to ask Switzerland for specific bits of information by proving that a valid
inquiry was on against the account holder. The Swiss could delay or deny the information
altogether.

A joint declaration for the implementation of Automatic Exchange of Information (AEOI)

was signed last month between the two sides here and it provided that both countries
would start collecting data in accordance with the global standards in 2018 and exchange
it from 2019 onwards. The AEOI conforms to a norm set by global economic body the
Organisation for Economic Co-operation and Development (OECD) for tax transparency.
Confidentiality and data protection requirements are to be strictly followed under the
India had to ask Switzerland for specific bits of
information by proving that a valid inquiry was on
against the account holder.
Big Change:
The end of Five-Year Plans: All you need to know

automatic information exchange framework. This process ensures the signatory always
maintains control over its exchange partners and the treatment of the data exchanged, as per OECD.

The automatic exchange of information will discourage Indians from stashing black money in Swiss banks. Indian deposits in Swiss
banks have been falling already.

The money held by Indians in Swiss banks stood at a record high of 6.5 billion franc (Rs 23,000 crore) by 2006-end. However, it has
been falling since then, except for in 2011 and in 2013 when it had risen by over 12 per cent and 42 per cent, respectively.

Recommended By Colombia

It declined to a record low of 1.2 billion franc (about Rs 8,392 crore) at the end of 2015, according to data from the Swiss National Bank.
In 2016, India slipped to 75th place in terms of money held by its citizens with banks in Switzerland. India was placed at 61st place in
2015, while it used to be among top-50 countries in terms of holdings in Swiss banks till 2007. India was ranked highest at 37th place in
2004. Such rapid decline in Indian deposits in Swiss banks leaves the Indian government with less chance of making big catches. Now
thatsite
This the uses
account holders
cookies know their
to provide covera will
you with good beexperience
blown, theand
decline in deposits
improve our site.will
Byonly quicken.
continuing to browse this site, you are agreeing to our us
of cookies
 Though the deal will do little by way of bringing back black money from Swiss accounts, it will have a deterrent effect. The black money
hoarders will be under pressure with one big safe haven gone off their list.

In its war on black money, India has also signed treaties with Mauritius, Singapore and Cyprus to prevent round-tripping of funds.

Stay on top of business news with The Economic Times App. Download it Now!

Live Market Industry About Us

News Newsletters Create Your Own Ad
Portfolio Commodities Advertise with Us
Powered by Mobile Speed Terms of Use & Grievance Redressal
Live TV Blogs Privacy policy
Biz Listings RSS

Download it from Download it from Download it from

FOLLOW US APP STORE GOOGLE PLAY Windows Store

Other Times Group news sites Hot on the Web

इकनॉिमक टाइ | ઈકોનોિમક ટાઈ સ | Pune Mirror | Bangalore Mirror | Ahmedabad Mirror |
ItsMyAscent | Education Times | Brand Capital | Mumbai Mirror | Times Now |
Indiatimes | नवभारत टाइ | महारा टाइ | ಜಯ ಕ ಾ ಟಕ | Go Green | AdAge India |
Eisamay | IGN India | NavGujarat Samay | Times of India | Lifehacker | Gizmodo |
Samayam Tamil | Samayam Telugu | Miss Kyra | Bombay Times | Filmipop
Living and Entertainment
Timescity| iDiva | Entertainment | Zoom | Healthmeup | Luxpresso | Gadget Reviews |
Titanium & Platinum Credit Card | Online Songs | MensXP | Hotels | Travel
Destinations | Cricbuzz | Recipes | Gaana | Happytrips | Getsmartapp
Interest Network
itimes
Income Tax Slabs | Aadhaar Card | How to Save Income Tax | GST Rates | Gujarat
Elections 2017 | GST | Income Tax | Sensex Today | Himachal Pradesh Election Result
| Sensex | Income Tax Calculator | Aadhaar
Services
Book print ads| Online shopping | Matrimonial | Astrology | Jobs | Tech Community |
Property | Buy car | Bikes in India | Free Classifieds | Send money to India | Used Cars
| Restaurants in Delhi | Remit to India | Buy Mobiles | Listen Songs | News |
TimesMobile | Real Estate Developers | Restaurant Deals in Delhi | Car Insurance |
Gadgets Now | Free Business Listings | CouponDunia | Remit2India | Techradar |
AliveAR | Getsmartapp App | ETMoney Finance App | Feedback

In Case You Missed It

Narendra Modi Gujarat Elections

Link Aadhar with Pan Link Aadhaar with SBI Account

Jio Phone IFSC Code

SBI IFSC Codes Income Tax

Stock Recommendations Car Loan EMI Calculator

Income Tax Calculator HRA Calculator

Copyright © 2017 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service